auction

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Auction

1. A way to sell an item in which a moderator takes bids from a number of persons for a period of time and ultimately sells to the highest bidder. For example, the moderator (called an auctioneer) may set the opening bid at $5 and, once someone offers to pay $5, may incrementally increase the requested bids until they stop. Variations on an auction may involve any number of things; for example, a person with more than one job offer may request higher salaries in turn and then finally take the highest paying position. See also: Bidding war.

2. See: Auction market.

auction

a means of selling goods and services to the highest bidder among a number of potential customers. Auctions can take several forms. One form is an open auction – increasing bid – competition in which the bids of all parties are observable and bidders drop out as the price increases until only the highest bidder remains. Another form is an open auction -decreasing price – auction in which the auctioneer starts off from a very high price that is then slowly decreased until one bidder agrees to buy at the last announced price. This form of auction is often called ‘Dutch auction’. Yet another form is a sealed-bid, closed auction in which all bidders have to submit their bids in sealed envelopes at the same time. In open auctions, bidders can gain some information about the private valuations that other bidders place upon the goods to be sold, while in sealed-bid auctions the private valuations of bidders remain unobservable.

The principles of auctions apply to situations where firms seek TENDER to supply products.

auction

a means of selling goods and services to the highest bidder among a number of potential customers. Auctions can take several forms. One form is an open auction, increasing bid, competition in which the bids of all parties are observable and bidders drop out as the price increases until only the highest bidder remains. Another form is an open auction, decreasing price, auction in which the auctioneer starts off from a very high price that is then slowly decreased until one bidder agrees to buy at the last announced price. This form of auction is often called a ‘Dutch auction’. Yet another form is a sealed-bid, closed auction in which all bidders have to submit their bids in sealed envelopes at the same time. In open auctions, bidders can gain some information about the private valuations that other bidders place upon the goods to be sold, while in sealed-bid auctions the private valuations of bidders remain unobservable. The principles of auctions apply to situations where firms seek tenders to supply products.

auction

A sales technique in which real or personal property is offered for sale and bidders make oral offers in varying amounts until one is accepted. Frequently used for involuntary transfers of real estate, such as foreclosures and tax sales. In some states, foreclosure auctioneers must be licensed.Where property is offered by the owner voluntarily for auction sale,the fine print in the auction terms usually contains a provision for a buyer's premium. The amount of the winning bid is automatically increased by the stated amount, and that percentage is used to pay the auctioneer's fees.

References in periodicals archive ?
Xu in [15] proposed a cloud computing resource allocation model based on combinatorial double auction mechanism for more effective resource utilization.
Zhao et al in [16] proposed a multi-round combinatorial double auction mechanism to allocate resources in geo-distributed data centers for big data stream processing.
The low rate of conspiracy in both treatments could be due, in part, to our use of the double auction trading institution.
Although we chose a double auction trading institution that usually leads to high efficiency and competitive prices even with small numbers of traders, the relatively low realized trading surplus limited the benefits of cooperation accruing to the subjects.
9 Some real and hypothetical referenda were conducted where the oral double auction was hypothetical-subjects were not actually paid their earnings (and they were told this fact in advance).
14 A shorter version of the script that is used to describe the rules of the oral double auction was used in some experiments.
These efficiencies are clearly quite low compared with ordinary double auctions with rising marginal cost functions, especially considering the experience level of these subjects, and the data in Table 3 replicate our previous findings (Van Boening and Wilcox 1996).
4), an institution that presents a compromise between the two trading institutions exemplified by double auctions and the ultimatum game.
Copeland and Friedman [1987; 1991] provide useful background information on laboratory procedures and computerized double auction markets.
Market A was a double auction and it existed as a source of income and entertainment for those who chose not to enter market B.
The procedural details for both the PLATO double auction and the PLATO posted offer are well documented elsewhere and are not repeated here.
In the Power TAC challenge, agents function as brokers in a power market, trying to attract a profitable set of customers through carefully designed tariffs, but also procuring energy from the wholesale market through day-ahead periodic double auctions (PDA).